Actual (Dec): CZK -8.93bn
Consensus: CZK -2.75bn
Previous (Nov): CZK 6.61bn
The balance of the current account fell back into red in December, the deficit was higher than expected. As for the main components, the trade balance surplus was marginal (CZK 0.6bn) because of lower exports. However, this is a seasonal effect, the result is not bad in comparison with December readings from the previous years. The balance of services remains stable (CZK 5.2bn) and has even improved compared with November. The C/A was influenced negatively by the income balance (CZK -12.7bn) and the balance of current transfers (CZK -2.0bn). The former includes a CZK 6.4bn worth of dividend outflow. According to the monthly figures the C/A deficit reached CZK 80.4bn in 2011, which is 2.1 in pct of GDP terms.
In December, the financial account showed a 6.3bn deficit because of short-term transfers in banking sector, while both direct and portfolio investments showed positive money inflows. The central bank´s FX reserves increased marginally.